10 Tips for Dealing with Debt Collectors

Calls from debt collectors are nerve wracking, and unscrupulous debt collectors often cross the line from annoying to illegal behavior. The Fair Debt Collection Act was enacted to protect you from harassing behavior, so if a debt collector has behaved illegally with you, you have a right to sue them for monetary compensation for their actions. Here are 10 tips to help you keep your cool and if need be, build a successful case against a debt collector who has crossed the line when it’s time to contact an attorney.

1. 1Obtain the notice in writing: Make sure the debt they are trying to collect is legitimate. Get specific information about the debt. If you request this, the debt collector must not discuss the debt until you receive the documents and review them. The law states that within five days after you are first contacted, the collector must send you a written notice detailing the amount of money you owe, the name of the creditor and what action you should take if you believe you do not owe the money.
2. 2If the debt is incorrect: Look over the paperwork carefully and make sure you are obligated to pay the debt. For example, it could be that it was a debt that is so old the statute of limitations has run out, or someone has stolen your identity and you’ve been victim of identity theft. If that is the case, then you must send the collection agency a letter stating that you do not owe the debt within 30 days after receiving written notice. If in response, the collector sends you proof that you owe the money, he can continue to try to collect the debt by contacting you.
3. 3If the debt is correct: Try to work out a payment plan with the debt collector, and ask them to accept a settlement for less than you actually owe. You can benefit from a lower rate if you can repay it quickly. Then make sure before you make the payment that the collector agrees – in writing – that they will remove the collection notice from your credit report after the debt is paid.
4. 4Get help: If you are having trouble paying your bills but are not yet in collection, you may find it helpful to get in touch with a credit counseling agency. But if you have multiple debts in collection, or are having difficulty dealing with a collection agency, contact a consumer law attorney for help.
5. 5When they can call: According to the Fair Debt Collections Practices Act, a debt collector can only call you between 8 a.m. to 9 p.m. If a debt collector is calling you outside of that time period, and leaving messages on your answering machine the next time they call you, tell the debt collector to stop and that you are aware of the Fair Debt Collections Practices law. Get the agent’s name and address, and follow up in writing.
6. 6Contacting others: A debt collector cannot leave any messages on a family member’s or your employer's answering machine. If a debt collector has called your employer or relative, if possible, retain the recording. If not, contact the debt collector by phone and in writing to let them know that you know your rights. If that doesn’t stop them, if and when you contact an attorney, you will have the recording and letter as documentation.
7. 7Garnishing wages: If a debt collector threatens to talk to your employer about garnishing your wages, it’s most likely a trick to get you to pay faster. The only way a debt collector can garnish your wages is if they take you to court and the judge makes a ruling in their favor. If they do threaten to sue you, it’s best to try to work out a payment agreement in writing before a collection agency sues you. If they do sue you, and the judge rules in their favor, it is a very difficult decision to reverse.
8. 8Owing on credit cards: Dealing with credit card companies to which you owe money is different than dealing with professional debt collectors and collection attorneys because the Fair Act Debt Collection Practices Act does not apply to them. Credit card companies are considered “original creditors” and their practices are regulated by your state, but most of the credit card companies follow policies close to the Fair Act Debt Collection Practices Act and will comply with your request to stop calling you at home or leaving messages. If you believe that you are being harassed by the credit card company or if you simply think your credit card company has gone too far, contact the Attorney General office in your state.
9. 9Once you’ve worked out a plan, get it in writing: Once you’ve agreed upon terms, it is important to get it in writing, with a dated signature from the debt collector included. The debt collection industry has a very high turnover rate, so in a short period of time you may have a different collector from the same agency with which you negotiated your agreement.
10. 10General Tips: As you’re working out your debt situation and working with a collector, make sure to send correspondence by certified mail and keep the return receipts as well as all correspondence with the debt collector. When dealing with collectors on the phone, keep track of the name of the agency, the collector’s name and the phone number, and the date and time of the call.

Remember that if a debt collector displays disrespectful behavior or makes false statements about you, whether on the phone, in writing, or in person, it is unfair and illegal. You have no obligation to give them personal information, such as your Social Security number or the name of your employer, nor is it ever recommended that you do so. You do not have to take abuse from debt collectors. In fact you have the right to sue the collector for monetary damages for their misbehavior.

If a debt collector has employed any of these tactics…

• Contacted you before 8 a.m. and after 9 p.m.
• Used obscene language
• Harassed you or repeatedly annoyed you by phone
• Abused you or threatened you with violence or harm
• Made a false statement to you such as implying that they are attorneys, are from the government, or have the ability to arrest you if you don’t pay your debt
• Contacted your employer or member of your family
• Collected an amount from you that is greater than your original debt (unless state law permits)

…then you have the right to sue that debt collector in state or federal court within one year of the date of the violation.

Contact an attorney that has expertise in the Fair Debt Collection Practices Act. The attorneys of Lemberg & Associates are experienced in putting a stop to the unfair behavior by debt collectors, and can get you fair compensation for the abuse you’ve suffered.